This archive report was first published on 2 November 2021.
Kenya Power and Lighting Company (KPLC) has made a remarkable turnaround, transforming from a loss-making entity in 2020 to a profitable one in 2021. According to its audited financial results for the year ended 30th June 2021, the state-owned electricity distributor made a pre-tax profit of KSh 8.2 billion in 2021, compared to a pre-tax loss of KSh 7.04 billion in 2020, marking an increase of KSh 15.2 billion or 216.42%.
Published on November 2, 2021, the financial results reveal that the positive growth was driven by an 8.4% increase in electricity revenue, resulting from a growth in electricity sales by KSh 9.8 billion to KSh 125.9 billion. This increase was mainly attributed to an expanded customer base and increased economic activity, leading to a unit sales growth of 400 GWh from 8,171 GWh in 2020 to 8,571 GWh in 2021.
Additionally, KPLC recorded a decline in operating costs, which includes transmission, distribution, and administration costs, by KSh 7.9 billion from KSh 47.8 billion in 2020 to KSh 39.9 billion at the end of June 30th, 2021. The company's balance sheet size grew to KSh 332.2 billion in 2021, compared to KSh 325.3 billion in 2020.
Finance costs reduced from KSh 12.5 billion in 2020 to KSh 9.1 billion in 2021, following the partial conversion of overdrafts and continued repayment of commercial loans. The firm also lowered its operating expenses by 17% from KSh 47.8 billion in 2020 to KSh 39.9 billion in 2021, due to lower provisions as a result of enhanced revenue collection and prudent cost management.
Looking ahead to 2022, KPLC plans to remain at the forefront of driving the ongoing dialogue on power purchase agreements to make electricity more affordable to customers and boost Kenya's competitiveness as a business hub. However, the directors of the firm have not recommended the payment of any dividends to its shareholders.
